What Is An Exercise Date?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Exercise date is part of an options contract and states the time by which the option must either be exercised or is disregarded. For European options, the option can only be exercised on the exercise date, whereas for U.S. options it can be exercised at any point up until the exercise date.

If an investor does not choose to exercise the option by the date (i.e. the asset price is in the wrong direction compared to the strike price) then the option contract is just written off and the option cannot be traded.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.